DeSantis Administration Approves Anti-ESG Measures

TALLAHASSEE (FLV) – Gov. Ron DeSantis and the State Board of Administration formally approved measures Tuesday that aim to protect Florida’s investments from “woke” environmental, social, and corporate governance (ESG).

The DeSantis Administration had previously announced it wanted all of Florida’s investment decisions to focus solely on maximizing the highest rate of return. The ESG criteria is the environmental, social, and governance goals that determines investment based on political factors such as renewable energy and social justice initiatives.

Tuesday’s vote updates Florida’s Retirement System Pension Plan policy and SBA corporate governance proxy voting guidelines. It aims to define the factors fiduciaries are to consider in investment decisions, which do not include ESG factors.

“Corporations across America continue to inject an ideological agenda through our economy rather than through the ballot box,” DeSantis said. “Today’s actions reinforce that ESG considerations will not be tolerated here in Florida, and I look forward to extending these protections during this legislative session.”

Thanks to the leadership of Governor DeSantis, the Florida Cabinet reaffirmed today that we don’t want a single penny of our dollars going to woke funds. We need asset managers to be laser focused on returns and nothing more. Florida’s not going to subsidize the actions of a bunch of Leftist ideologues who hate America; we’re not going to let a bunch of rich people in Manhattan or Europe try to circumvent our democracy.

Chief Financial Officer Jimmy Patronis

As a fiduciary of the State of Florida, I and my fellow trustees have an obligation to make responsible investment decisions on behalf of the beneficiaries we represent — not cater to woke corporate executives trying to force political ideology. Through this action today, we will continue to fight back against ESG agendas that put partisan ideology ahead of financial returns for Florida’s retirees.

Attorney General Ashley Moody

The governor had previously proposed legislation for the 2023 session to:

– Prohibit big banks, credit card companies and money transmitters from discriminating against customers for their religious, political, or social beliefs.

– Prohibit State Board of Administration (SBA) fund managers from considering ESG factors when investing the state’s money.

– Require SBA fund managers to only consider maximizing the return on investment on behalf of Florida’s retirees.

Florida House Speaker Paul Renner’s acceptance speech prioritized a crackdown on ESG. He sent a letter to Florida’s three credit rating agencies demanding they “drop the politics” and return to an “objective” financial criteria to measure the states credit rating.

“These radical goals are causing a politically-induced energy crisis, raising prices at the pump and our electric bills. ESG increases our cost of living, undermines our national security, and bypasses the checks and balances of the democratic process,” Renner had said explained.

Florida House Democrats criticized Republicans Tuesday morning, saying the governor is “roll[ing] back the clock” on corporate governance policies.

“You have corporations who are trying to invest money and invest their resources in a way that allows you to do well while doing good,” House Minority Leader Fentrice Driskell said.

“I don’t think most Floridians who are sitting around their kitchen tables trying to balance their budgets are thinking about whether or not a company is investing with an energy company that doesn’t use fossil fuel.”